Value Billing is defined as a fee charged for the value received by the client without regard to the time spent by the timekeeper. For example, even though it may take less than 20 minutes to prepare a will or a tax return for a client, the value of what you have provided for the client is worth more than the 20 minutes it took to prepare the documents using document assembly or tax preparation software. Value Billing is very easy to do in Tabs3. Typically, Value Billing is performed for a single transaction.

Set up the transaction codes you want to value bill as Expense or Advance transaction codes in the Transaction Code program (as opposed to Fee transaction codes). Enter the desired amount in the transaction code's Amount field. When you want to use this transaction code for value billing, select the expense/advance transaction code in the Fee file. After selecting the transaction code, the Rate Code field will automatically default to "8," which tells Tabs3 to retrieve the amount from the transaction code file. Enter the number of hours that you want the timekeeper to be given credit for on the productivity reports. After you have entered the hours, press the Enter key or Tab key to move to the next field. Tabs3 will automatically calculate the rate based on the hours to bill and amount entered. (Note: When using Value Billing, the adjustments are not tracked as a write-up or write-down on the productivity reports. This is because Rate x Hours = Amount to be Billed and there is no write-up or write-down. However, if Hours Worked is different than Hours to Bill, then an Hour Write-Up or Hour Write-Down will be shown as well as a Write-Up Hours Value or Write-Down Hours Value. See the Write-Up/Write-Down Overview for detailed information on how write-ups and write-downs are handled in various reports.)

Note: If the client's Billing Rate Code is "8," Tabs3 will automatically enter the amount from the transaction code file in the Amount field.

See also:   Methods of Billing
  Write-Up/Write-Down Overview